KUALA LUMPUR, 2 December 2024: Preliminary October 2024 traffic figures released last week by the Association of Asia Pacific Airlines (AAPA) revealed robust travel demand across the region, fuelled by healthy leisure and corporate travel appetites. 

International air cargo markets also saw potent growth, supported by businesses restocking inventories in preparation for the year-end holiday season and major online sales events.

Asia Pacific airlines reported international passenger numbers increased by 19.0% year-on-year in October, reaching a combined total of 31.0 million. Traffic volumes averaged 98.6% of the corresponding month in 2019. Revenue Passenger kilometres (RPK), a measure of passenger demand, grew by 19.7% year-on-year, reflecting growth in long-haul sectors. The growth in demand outpaced an 18.6% expansion in available seat capacity, leading to a 0.8 percentage point improvement in the average international passenger load factor to 81.2% for the month.

The region’s airlines continued to benefit from the growing demand for timely air shipments. In October, international air cargo demand in freight tonne kilometres (FTK) rose by 10.9% compared to the same month last year. Offered freight capacity increased by 10.6%, led by continued growth in international belly-hold capacity. As a result, the average international freight load factor saw a marginal increase of 0.2 percentage points to 61.6%.

AAPA Director General Subhas Menon commented on the results: “October was another strong month for Asia Pacific airlines, with 303 million international passengers carried for the first 10 months of the year, a 33% increase compared to the corresponding period in the previous year. The sturdy demand and capacity constraints caused by ongoing supply chain disruptions resulted in an average load factor of 81.5% during the same period.”

“Cargo demand rose sharply on major trade lanes, driving a 14% increase in international air freight volumes during the first ten months of this year. This was on the back of robust consumer demand and disruptions to maritime shipping due to security risks in the Red Sea.”

Menon said, “The outlook for travel markets remains positive, buoyed by growing demand in both leisure and business segments. However, challenges remain for carriers in meeting the demand, notably due to supply chain disruptions and delays in aircraft deliveries,” said Menon. 

“On the cargo side, markets are expected to remain vibrant throughout the year despite some economic uncertainties in the advanced economies. Overall, Asian airlines remain well-positioned to adapt to evolving global conditions and to navigate these challenges effectively.”

KUALA LUMPUR, 2 December 2024: AirAsia X Berhad (AirAsia X) reports revenue grew by 23% to MYR795 million on the back of a robust 84% passenger load factor and net profit at MYR121.6 million on foreign exchange gains, according to its unaudited financial results for 3Q24 ended 30 September 2024.

In a press statement on financial results released at the weekend, the airline said revenue increased by 23% year-on-year to MYR795.0 million in 3Q24 compared to MYR648.4 million recorded in 3Q23 driven by a 34% YoY growth in number of passengers carried with passenger load factor (“PLF”) robust at 84%. 

Earnings Before Interest, Tax, Depreciation and Amortisation (“EBITDA”) normalised to MYR76.2 million this quarter, compared to MYR132.1 million in the same quarter last year, which saw the reversal of provisions in 3Q23. Despite the third quarter being traditionally soft, the company recorded a net operating profit of close to MYR3 million. The net profit for the quarter charted MYR121.6 million on the back of a net foreign exchange gain.

During 3Q24, AirAsia X carried 1,084,049 passengers, up by 34% YoY with PLF increasing by four percentage points to 84% compared to 3Q23. Sustained demand in the market is evident with the healthy PLF even as seat capacity ramped up by 27% YoY to over 1,284,871 seats, with the company increasing its operational aircraft to 16 from 14 last year.

Ancillary revenue per passenger continued to thrive at MYR247, up by 4% YoY. Coupled with the uptick in passengers carried, total ancillary revenue surged to 40% YoY and recorded MYR267.5 million. The company’s average base fare stood at MYR443 this quarter due to promotional campaigns to mark the commencement of routes in this quarter, namely Changsha and Chongqing.

In terms of costs, the company reported a Cost per Available Seat Kilometre (“CASK”) of 13.98 sen/US¢3.14 and CASK ex-fuel remained industry-leading at 6.57 sen/US¢1.48. Unit costs increased due to the advancement of operations over the last 12 months. 

The company’s associate AirAsia X Thailand’s (“TAAX”) revenue was up by 5% YoY to MYR300.7 million, as passengers carried increased to 342,533 passengers in 3Q24 while its PLF was sound at 80%. During the quarter under review, TAAX recorded a strong average fare of MYR613, further boosted by similarly robust ancillary revenue per passenger of MYR132. TAAX posted a net profit of MYR55 million for 3Q24.

AirAsia X’s total fleet size remained at 18 A330s as of the end of June 2024, with 16 aircraft activated and operational. TAAX’s fleet size stood at eight A330s, with six aircraft activated and operational.

AirAsia X CEO Benyamin Ismail said: “The full reactivation of our fleet is fast approaching as we returned an additional aircraft to service in November, with only one more aircraft left on the ground. The fleet reactivation journey has been challenging, particularly as spare parts scarcity remains a drawn-out complication in the industry, but we are nearing the finish line. In addition, we are in the concluding stage of engagement with a lessor for the induction of one additional aircraft in early 2025, bringing the fleet size to 19 aircraft by the first half of next year.”

On 16 October 2024, the company secured its shareholders’ approval of the proposed acquisition of Capital A’s aviation business, and it is now progressing on fulfilling the requisite condition precedents for completion of the exercise, including the proposed private placement currently underway with book billing expected after relevant approvals are secured.